The U.S. automobile industry disruption will see major disruption next week when the federal EV tax credit expires on September 30. The federal EV tax credit provides up to $7,500 for qualifying new electric vehicles and up to $4,000 for qualifying used EVs. Buyers must meet income requirements and also select vehicles that satisfy price caps, final assembly, and battery sourcing requirements.
Ahead of the expiration, U.S. EV sales jumped 18% and hit a record high in August, according to Cox Automotive. Used EV sales soared 59% for the same period. EV demand is reported to be strong through September, matching August’s elevated activity as buyers hurry to qualify for the EV credit. Hyundai (HYMTF), Toyota Motor (TM), and Honda (HMC) have all pointed to the impact of the expiring tax credit in their recent sales updates.
New data from Cars.com indicated that nearly half of consumers considering buying an EV are now accelerating their purchases. Cars.com said demand on its site is up 33% for new EVs compared with this time a year ago. “Shoppers are moving quickly to lock in savings, and Cars.com’s Top EV Picks, including the Hyundai Ioniq 6 and Ioniq 5, Kia EV9, and Chevrolet Equinox EV, show there are strong options for every type of buyer,” highlighted the company.
Notably, high-demand EV models are selling out quickly, which has left some dealers working with limited stock on some models. Auto dealers are trying to thread the needle of not oversupplying their lots on the expectation that demand will fall on October 1.
The top ten sellers of electric vehicles are Tesla (NASDAQ:TSLA), General Motors (GM), Hyundai (HYMTF), Ford Motor (F), BMW (OTC:BMWKY), Volkswagen (OTCPK:VWAGY), Nissan (OTCPK:NSANY), Rivian Automotive (NASDAQ:RIVN), and Toyota (TM). Further down the list is EV pure play Lucid Group (LCID).
Related tickers: Carvana (CVNA), CarMax (KMX), Lithia Motors (LAD), AutoNation (AN), Asbury Automotive Group (ABG), CarGurus (CARG), Group 1 Automotive (GPI), Sonic Automotive (SAH), Penske Automotive Group (PAG), Vroom (VRM), Rush Enterprises (RUSHA), Shift Technologies (OTC:SFTGQ), Driven Brands (DRVN), ACV Auctions (ACVA), Cars.com (CARS), Tesla (NASDAQ:TSLA), Toyota Motor (TM), Honda Motor (HMC), Nissan (OTCPK:NSANY), Openlane (KAR), Hyundai (HYMTF), General Motors (GM), Rivian Automotive (NASDAQ:RIVN), Lucid Group (LCID), Stellantis (STLA), and Ford Motor (F).